News

The 2021 session of the Arkansas General Assembly ended in April and several new laws were enacted regarding trust and estate matters. The following is a general review of each new law and what changes it might mean for you in the future.

Friday, Eldredge & Clark, LLP has hired Attorney Caleb D. Hollinger as the newest member of the firm’s Trust and Estate Planning Group. Hollinger joins the firm after graduating from the University of Florida Levin College of Law where he earned a Master of Laws in Taxation.

Beginning today, under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 and the American Rescue Plan Act of 2021, the Federal Emergency Management Agency (FEMA) will provide financial assistance for COVID-19 related funeral/cremation expenses incurred after January 20, 2020.

Chambers and Partners© has recognized Friday, Eldredge & Clark and five of the firm’s trust and estate planning attorneys in its 2020 edition of Chambers High Net Worth Guide. The guide covers private wealth management work in key areas around the world, and its rankings are based on extensive research and in-depth interviews with clients and industry leaders. In addition to the individual attorneys recognized, the firm received the highest ranking awarded by Chambers.

During the COVID-19 pandemic, the investment world has seen a dramatic decrease in values. This is obviously not what you want to see in your retirement account; however, there could be a silver lining for you to take advantage of — a Roth conversion. A Roth conversion is taking the pre-tax dollars in your retirement account — whether that be a qualified plan sponsored by your employer or a traditional IRA — and paying tax on these amounts currently while leaving such funds in a tax free account (i.e., a Roth account). The earnings after the conversion grow tax-free indefinitely, so when you pull the funds out of the Roth account, there is no tax. Although, the distribution from the Roth account must be a “qualified distribution” to be tax free. This requires that the Roth distribution is made after a 5-year period of participation in the Roth account and occurs on or after the individual attains age 59 ½. In the case of a Roth conversion, the 5-year period begins on the date of the Roth conversion. If there is a distribution from a Roth account that is not a qualified distribution, then the earnings in the Roth account from the time of the Roth conversion will be taxed.

As you may have heard, Congress recently passed — and the President signed into law — the SECURE Act, which is landmark legislation that affects the rules for creating and maintaining employer-sponsored retirement plans. SECURE stands for the Setting Every Community Up for Retirement Enhancement Act. The SECURE Act is generally effective on January 1, 2020.